UBS Lowers Mid-America Apartment Price Target to $142.00, Maintains Sell Rating

Wednesday, Jul 16, 2025 2:29 am ET1min read

UBS maintains "Sell" rating for Mid-America Apartment (MAA) and lowers price target to $142.00 from $149.00, a 4.70% reduction. The analyst's revision reflects a cautious approach towards MAA's growth trajectory. The average target price from 24 analysts is $167.75, implying a 13.54% upside from the current price of $147.75.

UBS Group has revised its price target for Mid-America Apartment Communities (NYSE: MAA) from $149.00 to $142.00, a 4.70% reduction, and maintains a "Sell" rating on the stock. The analyst's decision reflects a cautious approach to MAA's growth trajectory. As of July 2, 2025, the average target price from 24 analysts is $167.75, indicating a 13.54% upside from the current price of $147.75.

Mid-America Apartment Communities, a real estate investment trust (REIT), operates in the apartment rental market. The company reported earnings of $2.20 per share for the first quarter of 2025, slightly exceeding analyst estimates. Despite the positive earnings, the company decided to maintain its full-year 2025 guidance due to economic uncertainties.

UBS's revised target price reflects concerns about the company's valuation. The current price-to-earnings (P/E) ratio is 30.71, and the price-to-earnings-growth (PEG) ratio is 3.87, indicating that the stock may be overvalued. Additionally, the company's debt-to-equity ratio is 0.82, suggesting a moderate level of leverage.

The average target price from 24 analysts is $167.75, which implies a significant upside potential. However, the stock's current price of $147.75 suggests that investors may be anticipating a correction in the near future. The company's strong fundamentals, such as a 4% dividend yield and a 32-year streak of consistent dividend payments, may provide some support for the stock's price.

Investors should consider the recent downgrades and the company's valuation when evaluating MAA's potential in the market. The company's future performance is expected to benefit from a significant reduction in new construction deliveries and positive trends in new lease rates.

References:
[1] https://www.marketbeat.com/instant-alerts/ubs-group-lowers-mid-america-apartment-communities-nysemaa-price-target-to-14200-2025-07-15/
[2] https://za.investing.com/news/analyst-ratings/midamerica-apartment-communities-stock-downgraded-by-goldman-sachs-93CH-3786483

UBS Lowers Mid-America Apartment Price Target to $142.00, Maintains Sell Rating

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